WHAT LIES AHEAD : NEAR-TERM PIC­TURE

Flash News Investment - - TECHNICALS -

In­dian stock mar­ket bulls con­sol­i­dated their po­si­tion with the mar­kets mak­ing all-time highs but with tremen­dous volatil­ity driven by Oc­to­ber F&O ex­piry. The pos­i­tive do­mes­tic cues, apart from cor­po­rate earn­ings, led the sec­tor­spe­cific move­ments and thereby mar­ket move­ment. The gov­ern­ment’s plan to in­ject Rs 2.11 lakh crore for pub­lic sec­tor banks (PSBs) buoyed PSB stocks so much that the stocks jumped be­tween 10-40% in in­tra-day trade. Fur­ther, anti-dump­ing duty on stain­less steel im­ports lifted steel stocks in in­tra-day trade. as a re­sult, bank­ing, metal and power sec­tors helped mar­kets sus­tain their peal lev­els. Broader mar­kets re­mained more or less in line with the bench­mark in­dices.

Tech­ni­cally, Nifty has closed at all-time high lev­els with in­tra-day volatile ses­sion on Oc­to­ber 26. Nifty cor­rected up to 38.2% re­trace­ment level of the prior up­ward rally and bounced back to close in the green. Thereby, the up­side rally has con­tin­ued for the fourth con­sec­u­tive ses­sion with ris­ing vol­umes and the 14-pe­riod RSI at 69 de­pict­ing big mo­men­tum. On a weekly ba­sis, the mar­kets are head­ing up­wards yet again af­ter a breather of one week and hence, go­ing for­ward, we hold medium term re­sis­tance at 10550-10650 lev­els, above 10350 on a clos­ing ba­sis. If mar­kets re­verse for cor­rec­tion, we hold 10300-10265 as sup­ports on an im­me­di­ate ba­sis, fol­lowed by 10240-10210.

The In­dian Volatil­ity In­dex (VIX), a gauge for mar­ket’s short term ex­pec­ta­tion of volatil­ity, de­creased by 1.11% and reached 11.63. Nifty Novem­ber Fu­tures closed at 10,357.25 on Thurs­day at a premium of 22.55 points over spot clos­ing of 10,334.70. The Nifty Put Call ra­tio (PCR) for Novem­ber series stood around 1.13. On the op­tions front for the Novem­ber series, max­i­mum Put OI is at 10,000 strike, fol­lowed by 10,200, while max­i­mum Call OI is at 10,500, fol­lowed by 10,400 strike. The top five stocks for Novem­ber series whose prices were up along with OI up were PVR, Adani Power, Col­gate Pal­mo­live, Just Dial and Ju­bi­lant Food. The top five stocks whose prices moved down along with OI up were Nes­tle In­dia, Page In­dus­tries, Mindtree, Coal In­dia and BEML.

NIFTY 50

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